Russia’s government has introduced a bill to the State Duma that seeks to impose criminal liability on entities offering cryptocurrency services without regulatory approval from the central bank. The proposed legislation outlines severe penalties, including fines up to $4,000 and prison sentences of up to four years for individuals operating unregistered digital currency activities. More serious offenses, particularly those involving organized groups, could lead to compulsory labor or imprisonment for up to seven years.
This move underscores the Russian government’s intent to tighten its grip on the burgeoning crypto sector, which has been largely unregulated. The bill follows earlier proposals aimed at penalizing illegal crypto mining and reflects a broader trend of increasing scrutiny over digital assets. The Supreme Court has criticized the bill as “premature,” indicating a need for a more comprehensive legal framework before enforcing such penalties.
For market professionals, the implications are clear: if passed, this legislation could significantly alter the operational landscape for crypto businesses in Russia, potentially driving some entities underground while increasing compliance costs for others.
Source: cointelegraph.com